What is Wealth Management without Risk Management?
The Monte Carlo Retirement
Many advisors rely on investing in stocks and bonds in order to create Retirement Cash Flow. Imagine a five percent withdrawal on top of these market returns. Interest rate variability can have extended periods of time with very low interest rates. Your annual income needs may add significant pressure on the equity (stock) portion of your retirement nest egg. You might be a big winner, you might be a big loser. This is not our idea of a Retirement Plan.
Short Term Interest Rates
Imagine pulling five percent from this pile. Consider a rapidly declining stock market combined with low interest rates. There is clearly a substantial place for equities and bonds in a retirement plan. But, we believe that on top of a well-balanced portfolio, there should be a place for Guaranteed* Lifetime Income for you and your spouse as long as one of you is living. This will allow less pressure annually on your stock and bond portfolio. We consider a guarantee of protection of assets combined with a significant long term care benefit as critical discussion points. Both of these can be income tax free benefits.
Hypothetical example for illustrative purposes only. *Contract guarantees are guaranteed solely by the claims paying ability and strength of The Issuing Insurance company.
Exit Strategies
The most important day of a business owner’s life is the day he or she exits the business. While exciting, this time can be very stressful if the proper strategy is not in place regarding who will go on to take over the company. Because many aspects can take years to prepare, a business owner should start planning their exit strategy far in advance. Ensure a confident retirement by solidifying the future of your business.
Allow Risk Management and Wealth Management to work their Parallel Paths to help bring you a well thought out lifetime cash flow for the benefit of you, your spouse, your children, and your grandchildren. Let us show you why this is an obvious path to us and how we cannot understand other "Wealth Managers" or "Wealth Advisory Firms" that don't consider this as well.
